Lec 02-Understanding the basics of AI in Marketing-II
Summary
TLDRThis course explores the evolution of AI in marketing, focusing on Marketing 4.0 and 5.0. It discusses the integration of AI with other technologies to enhance customer interaction and productivity. The script highlights the customer journey, the impact of the internet, personalization, and mixed reality on marketing strategies. It also showcases how CarMax leveraged AI and Salesforce for an omnichannel experience, enhancing customer satisfaction and operational efficiency. The video concludes with a look at the history and categorization of AI, distinguishing between weak and strong AI.
Takeaways
- đ The course focuses on AI in marketing, covering its evolution and impact on marketing strategies.
- đ Marketing 4.0 combines online and offline interactions and integrates AI to enhance productivity and human connectivity.
- đ„ The customer path in Marketing 4.0 includes five steps: awareness, appeal, ask, act, and advocate.
- đ The development of technology, especially AI, has led to Marketing 5.0, focusing on personalization and addressing environmental and social issues.
- đ Marketing 5.0 uses AI in three main techniques: predictive, augmented, and contextual marketing, leading to an agile marketing framework.
- đ CarMax's Omni-channel strategy uses AI to enhance customer experience by personalizing interactions and streamlining the car buying process.
- đ Marketing 5.0 emphasizes sustainability and the correction of past environmental damage using AI.
- đ» Businesses must have a website to succeed today, as customers rely on online research and social networks for product information.
- đŻ AI enables personalization, improving customer engagement, loyalty, and sales by customizing interactions in real-time.
- đ€ AI is categorized into weak AI, which is task-specific, and strong AI, which imitates human common sense and can handle complex tasks autonomously.
Q & A
What is the main focus of Module 2 in the course on artificial intelligence and marketing?
-Module 2 continues the discussion on the basics of AI in marketing, focusing on the impact of new technology in marketing, the evolution into Marketing 4.0 and 5.0, and the categorization of AI between strong and weak AI.
How is Marketing 4.0 defined in the script?
-Marketing 4.0 is defined as a marketing approach that combines online and offline interaction between companies and consumers, merging artificial intelligence with other technologies to increase productivity and human-to-human connectivity.
What are the five steps in the customer path as described in the script?
-The five steps are: 1) Awareness - the customer learns about the brand; 2) Appeal - consumers become attracted to the brand; 3) Ask - consumers search about the product online; 4) Act - consumers make a purchase; 5) Advocate - customers recommend the brand to others.
What is the significance of transparency in the digital economy as mentioned in the script?
-Transparency in the digital economy is significant as it prevents brands from making false promises and allows the public to evaluate a company's brand position, promises, and values, which is a valuable instrument for the public.
What is the role of AI in Marketing 5 according to the script?
-In Marketing 5, AI plays a role in creating a personal marketing platform, analyzing data, and working with other technologies to ensure customer satisfaction and profit while being mindful of societal norms and sustainability.
How has the COVID-19 pandemic affected marketing strategies as discussed in the script?
-The COVID-19 pandemic has led to social distancing and masking, forcing marketers to develop new ways of interacting with customers to maintain personal interaction and capture new clients while ensuring customer satisfaction and profit.
What are the three types of marketing techniques that are prominent in Marketing 5?
-The three types of marketing techniques in Marketing 5 are predictive marketing, augmented marketing, and contextual marketing.
How does CarMax utilize Salesforce to create a seamless customer experience?
-CarMax uses Salesforce to create a centralized view of the customer, personalize customer experience across channels, and increase productivity and customer satisfaction by automatically classifying and routing incoming customer SMS messages.
What is the impact of the internet on businesses as described in the script?
-The internet has made it essential for businesses to have websites, as 81% of people would not buy from a business without one. It has also shifted the way customers research products and services, favoring online reviews and comparisons over traditional advertising.
What are the three types of mixed reality technologies mentioned in the script?
-The three types of mixed reality technologies mentioned are augmented reality (AR), virtual reality (VR), and mixed reality (MR).
How does AI categorize into weak and strong AI, and what are their differences?
-Weak AI provides suggestions based on past data and is designed for specific tasks, while strong AI imitates common sense and can handle a wide range of problems without human intervention, potentially becoming self-aware.
Outlines
đ Introduction to AI in Marketing and Marketing 4.0
This paragraph introduces the course on artificial intelligence in marketing, focusing on Module 2 which delves into the evolution of marketing into versions 4.0 and 5.0. It discusses the integration of AI with other technologies to enhance productivity and human-connectivity. Marketing 4.0 is characterized by a customer-centric approach, merging online and offline interactions, and a customer path consisting of awareness, appeal, ask, act, and advocate stages. The paragraph also touches on the impact of technology on marketing, the rise of Marketing 5.0 during the COVID-19 pandemic, and the importance of personal interaction in marketing strategies.
đïž Marketing 5.0 and the Impact of Technology
The second paragraph explores Marketing 5.0, emphasizing the need for a personalized marketing platform that aligns with societal norms and sustainability. It outlines three types of marketing techniques: predictive, augmented, and contextual, which contribute to agile marketing frameworks. The paragraph also discusses the environmental and social consequences of unchecked growth, the role of AI in advertising, and the potential of Marketing 5.0 to improve online sales and customer satisfaction. The impact of the internet, supply and demand dynamics, personalization, and mixed reality on marketing are also highlighted, showcasing how these technological advancements have reshaped customer expectations and business practices.
đ CarMax's Omni-Channel Strategy and AI Integration
This paragraph narrates the story of CarMax, the largest used vehicle retailer in the U.S., and its strategic use of AI and Salesforce to create an omni-channel experience. It details how CarMax disrupted the automotive retail sector with integrity and transparency, and later by offering a seamless online and in-store buying process. The company's use of AI for personalization, improving productivity, and enhancing customer satisfaction through various touchpoints is discussed. The paragraph also covers CarMax's response to the COVID-19 pandemic, introducing contactless test drives and home delivery options, and its focus on employee and customer experiences through custom apps and agile development practices.
đ ïž AI's Role in Business Innovation and CarMax's Digital Transformation
The fourth paragraph examines the role of artificial intelligence in business innovation, particularly in CarMax's digital transformation journey. It explains how CarMax accelerated its digital initiatives during the pandemic, focusing on employee and customer experiences. The company's culture of innovation and entrepreneurship, combined with digital-native characteristics, allowed for rapid change and adaptation. The paragraph also provides a historical overview of AI, from its conceptual beginnings to the development of weak and strong AI, highlighting milestones such as the creation of AI products and significant achievements in AI capabilities.
đ€ Understanding AI: Weak vs. Strong Artificial Intelligence
The final paragraph concludes the module by discussing the categorization of AI into weak and strong AI. It defines weak AI as systems that provide suggestions based on past data and are limited to specific tasks, while strong AI is capable of thinking like humans, using general knowledge and common sense. Examples of weak AI include virtual assistants and recommendation systems, whereas strong AI is represented by self-driving cars and AI in hospital operating rooms. The paragraph summarizes the evolution of marketing discussed in the module and the significance of AI in modern business operations.
Mindmap
Keywords
đĄArtificial Intelligence (AI)
đĄMarketing 4.0
đĄCustomer Journey
đĄPersonalization
đĄPredictive Marketing
đĄAgile Marketing
đĄSustainability
đĄOmni-Channel Experience
đĄMixed Reality
đĄSupply Chain Management
đĄWeak AI
đĄStrong AI
Highlights
Introduction to AI in marketing, discussing the evolution from Marketing 4.0 to 5.0 and the integration of AI with other technologies.
Marketing 4.0 defined as the approach combining online and offline interactions with AI to increase productivity and human connectivity.
The five-step customer path in Marketing 4.0: Awareness, Appeal, Ask, Act, and Advocate.
The importance of transparency and the impact of technology on brand promises in the digital economy.
Marketing 5.0's requirement for a shift from segmentation to a more personal marketing platform in the age of COVID-19.
The three types of marketing techniques in Marketing 5.0: Predictive, Augmented, and Contextual, leading to Agile marketing.
The societal and sustainability impacts on marketing strategies, emphasizing the need for environmental responsibility.
AI's role in advertising and its potential to improve online sales, customer satisfaction, and reduce a brand's carbon footprint.
The impact of technology on marketing, including the internet, supply and demand dynamics, personalization, and mixed reality.
The necessity for businesses to have a website and the shift towards online research and social networks for product information.
The transformation of supply chain management and the rise of the Chief Supply Chain Officer.
AI's impact on personalization, enabling brands to increase customer engagement and sales through real-time understanding.
The distinction between Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR) in experiential marketing.
The story of CarMax, the largest used vehicle retailer in the U.S., and its focus on trust and transparency in the car buying process.
CarMax's Omni-Channel strategy and its use of Salesforce to create a seamless customer experience.
The implementation of AI at CarMax for personalizing customer experiences and increasing associate productivity.
CarMax's response to the COVID-19 pandemic, accelerating its Omni-Channel experience and introducing contactless car buying.
The importance of putting customers and employees at the center of every decision at CarMax, enhancing both customer and employee experiences.
CarMax's culture of innovation and entrepreneurship, blending digital natives to operate like a true digital technology company.
Definition and history of Artificial Intelligence, from its early concepts to modern applications and the distinction between weak and strong AI.
Transcripts
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welcome to this course on artificial
intelligence and marketing and we will
talk about module 2 so as you can see
that we are talking about the first part
that is Introduction to AI in marketing
management and the first three modules
are dedicated to understanding the
basics of AI in marketing we have talked
about module one and now we will start
with module two in this module we will
continue the discussion of marketing
Evolution into
versions four and five what is the
impact of new technology in marketing
along with example what is AI and its
brief history and categorization of AI
between strong Ai and weak AI now let us
look at what is marketing 4 marketing 4
can be explained as the marketing
approach that combines the online and
offline interaction between companies
and
consumers at the same time it can also
be explained as the approach that merges
artificial intelligence with other
Technologies to increase productivity
and increase human to human connectivity
thus improving the customer interaction
process it has led to the increase in
the outcome of different changes sourced
from an extreme Worldwide Challenge
other kinds of purchases and quick
advancements in Innovations in marketing
4 the typical day-to-day customer is set
to follow a fixed customer
path which is as follows the first is is
being aware customer learns about the
brand from others or are exposed to the
advertisements the second step in this
customer uh path is appeal so consumers
become attracted to the brand and
develop a set of prospective Brands to
purchase from and the third is to ask
consumer searches about the product
online and compare prices and features
Etc in the fourth step they act so cons
you must buy online and in a store and
proceed to use the product for the first
time the fifth is Advocate customers
recommends the brand to others and keep
using it themselves so these are the
five steps that we have uh just seen 1 2
3 4 and five in the first that is aware
so uh it means I know second appeal that
is I like like it the third ask I am
convinced at the fourth stage that is
act is that I am buying the product and
at the fifth stage that is Advocate
where I recommend the
product or the brand to my family and
friends customers now have the resources
and means to evaluate and scrutinize any
company's brand position
promise corporate social
responsibilities and core values in the
digital
economy due to the transparency Brands
can no longer make false unverifiable
promises this proves as a valuable
instrument for the public the
development of technology has led to the
introduction of artificial intelligence
which has led to marketing five and now
we come to marketing five marketing file
five will require us to analyze
marketing for and then wholly revolve
from segmentation and personalization to
create a new marketing platform that is
personal in the age of the covid-19
pandemic we distancing and masking was
the basic regime marketers have had to
develop new ways of interacting with the
customers to keep their businesses and
capture new clients and customers by
maintaining that personal interaction so
marketing f is a complex model with
several faets that must work together to
ensure customer satisfaction and profit
information procured by Ai and other
technological channels that is data Ren
marketing is inputed into the three
different types of marketing techniques
that are prominent
now one is predictive second is
augmented and the third is
contextual this gives rise to Agile
marketing framework work that works in
harmony while ensuring it complies with
societal norms and guidelines and is
sustainable also at the same time so now
these are uh one is augmented marketing
second is predictive marketing and the
third is contextual marketing and this
predictive marketing comes from the data
D marketing and contextual marketing
gives and their interaction gives rise
to uh agile marketing and the society
and sustainability are affecting
covering these three marketing so
marketing five has to deal with the
consequences of the aggressive and
unchecked growth over decades leading to
leading to negative environmental impact
and Rising inequality so companies
cannot Thrive and survive if they ignore
the external consequences of their
actions due to this one of the core
purpose of marketing five is to use and
apply artificial intelligence to prevent
and correct the pollution and
environmental damage that has occurred
over the years AI also has become an
integral part of the advertising process
multiple makeup brands accessory Brands
Etc have been using the tool to help
ease the apprehensions of the consumers
and boost online sales marketing 5 has
enormous potential to improve online
sales and customer satisfaction and
reduce the carbon Footprints of the
brand
now let us look at the impact of
technology that is a new marketing
reality first is the internet then
supply versus demand the third is
personalization and the fourth one is
mixed reality so now let us look at the
impact of internet in the past
businesses could get buy without a
website however that is is no longer the
case today customers expect businesses
to have websites in fact 81% of people
said that they would not buy from a
business if it did not had a website
having a website is essential for any
business that wants to be successful in
the past we would ask our friends and
family for recommendations when we were
looking for a new product or service
these days we are much more likely to do
our own research online we will read
reviews and compare prices for making a
purchase this change is due in part to
the increase uh in internet access and
in part to the increase in mistrust of
advertising people don't trust
advertising
anymore they prefer to find out what's
true about products or Services through
social networks social networking sites
like Facebook and Twitter allow
companies to connect directly with
customers the next is supply versus
demand over the last 30
years Logistics has undergone a
tremendous change from a purely
operational function that reported to
sales of manufacturing and focused on
ensuring the supply of production lines
and the delivery to customers to an
independent Supply Chain management
function that in some companies is
already being led by a CSO that is the C
Chief supply chain officer the focus of
Supply Chain management function has
shifted to Advanced planning processes
such as analytical demand planning or
integrated
snop which has become established
business process in many companies the
third is
personalization artificial intelligence
machine learning and natural language
programming are changing the ways Brands
interact with the customers AI based
personalization enable Brands to
increase customer
engagement
improve loyalty increase sales and more
completely understand the customer so
that is also very
important to more completely understand
the customers and all in the real time
using AI brands are able to customize
their website content based on each
specific customer which helps to improve
conversion rate the next comes mixed
reality there are three kinds of
Technology available right now in the
market first is the AR that is augmented
reality the second is VR that is virtual
reality and the third is Mr that is
mixed reality the three can be
distinguished as below virtual reality
or VR places users in a 100% artificial
digital environment like ocas Rift
content augmented reality that is AR
uses overlays to display virtual objects
on the real world environment like
Pokémon go the third is mixed reality
that is Mr goes be on overlays anchoring
virtual objects to the real world for
interaction in experiential marketing
brands are constantly finding new ways
to give consumer an experience they will
not soon forget they are constantly
striving to plan activations that will
not only Reach people but also get them
excited about the product mixed reality
can keep an audience engaged with the
brand and reach a larger audience it is
The Cutting Edge of technology and
brands are beginning to find success
blending realities for a more immersive
experience now let us look at the story
of
Carmax Carmax is the largest retailer of
used vehicles in the United States
because of the trust it has created with
its customers with trust at its core
CarMax brought integrity and
transparency into the car buying process
and made it very simple and easy having
first disrupted the automative retail
sector where it first launched in 1993
CarMax disrupted the industry for the
second time by launching a true Omni
Channel experience that empowers
customers to buy a car on their terms
online in store and a sess integration
of both so we will discuss how the
company use Salesforce to create that
experience Delight customers in a new
and innovative ways and reimagine car
buying so now we are we are trying to
analyze the of Carmax that through Omni
channel strategy for flexible customer
interaction anticipating its customers
would want more control of the car
buying Journey the company set about
creating a human- centered Omni Channel
experience that enable customers to
interact seamlessly online and with
their stores and truly buy a car on
their terms the car buying process is
not completely linear and a single
customer may interact with multiple
Associates during that unique Journey
from remote support specialist to inore
Associates so CarMax worked with
Salesforce to create a centralized view
of the customer to provide a seamless
experience across all the touch points
the company uses AI to personalize
customer experience across channels
providing product recommendations for
customers and time saving next best
action for associates is also uses AI to
automatically classify and root incoming
customers SMS messages increasing
Associates productivity and customer
satisfaction in addition the company
launched multiple contact centers to
provide remote consy service that helps
customers via phone text and digital
channels while they are shopping online
understanding customers position in the
customer Journey process before
2020 CarMax was already well underway
with this ambitious digital
transformation then the pandemic hit
with its strong digital foundation in
place the company was able to quickly
peot accelerating the launch of its Omni
Channel experience to the rest of the
country and rolling out CarMax curbside
delivery within 3 weeks CarMax scrub
side is a new contactless way for
customers to test drive and buy a new
car with adherence to social distancing
practices CarMax also offers a home
delivery op option for most of the
customers Associates can concentrate on
providing outstanding on-site customer
service
experience thanks to appointment
scheduling guided checklist and other
workflows now when someone books an
appointment for a test drive online it
triggers a workflow that ensures the car
is checked clean comfortable and ready
to drive the buying experience becomes
seamless too so customers can save time
by completing most of the process online
in advance such as getting pre-approvals
for
financing CarMax rolled out CarMax crite
to the whole country to thousands of
Associates and all its customers is in
less than 3 weeks next it delivered
great customer experience through
employee experience by custom apps one
important reason for CarMax success is
that it puts both customers and employ
emplo Es at the center of every decision
CarMax redesigned its customer
experience at a fundamental level with
interntional relationship
designs this involved listening to
customers and using design thinking and
other tools to emphatically but
deliberatively evolve its relationship
with customers custom apps also enhance
experience for both employees and
customers the company's coders benefit
from a modern agile developers
experience and use pre-built partner
solutions to accelerate the time to
market for their apps on the front end
CarMax
Associates have the tools and
information they need to Delight
customers for example when the delivery
team learned that a customer had a new
baby they included a gift of toys with
the C delivery it was nice surprise for
the
customer that would definitely Delight
them and all customer want a surprise
and obviously that Delights them and the
third is implementing change with
acceleration since the start of the
pandemic CarMax has gained new heights
of efficiency as they were able to move
and innovate faster than ever before
customer facing Associates play a vital
role with some included in the company's
product team this ensures development
initiative addresses user pinpoints from
the beginning and meaningful testing and
training starts early as a result it now
takes days not months to train a staff
when a new capability or app is rolled
out it is a combination of people
culture and technology that enabled this
rapid change and allowed CarMax to
continue to reimagine the future of car
buying Carmax have always had an amazing
culture of innovation
and Entrepreneurship but lately when
they brought in a lot of digital native
characteristics it actively binded all
of the three things and made it operate
like a true digital technology company
now let us look at what is AI so what is
artificial
intelligence it is the study of methods
for making computers behave
intelligently so artificial intelligence
is study and design of intelligent
agents intelligent agent is an AI
program that perceives its
environment perceives its environment
take actions autonomously in order to
achieve
goals and may improve the performance
with learning or may use knowledge now
let us look at when and where it
started so in 1945
whenever Bush suggested machine scan
thing Concepts then in
1950 alen touring suggested the
machine's ability to take
decisions and in 1956 the term
artificial intelligence was first used
by mcarthy and the darmor workshop in
1967 wot project in Vasa Unity
Japan in 1989 Cari melon University's
Hightech and deep
thought in 1997 de blue supercomputers
beat the world chess
champion in 2000 deep learning big data
and artificial in general intelligence
came into being in 2010 access to large
amounts of data that is big
data and in 2016 AI product Market
reached $8
billion so in Broad perspective
it can be categorized as weak AI that is
suggestions are based on past data and
strong AI that imitates common sense so
weak AI giv suggestion that is that are
based on the past data while strong AI
it imitates common sense now because it
imitates common sense that is why it is
called as strong AI we AI consists of
system designed to do one particular
particular job it refers to system that
are programmed to accomplish a wide
range of problems but operates within a
predetermined or predefined range of
functions we have lived with v a for a
while now vki system includes video
games such as chess where the end result
is winning the game and a personal
assistant such as Google uh such as
Amazon Alexa and Apple Siri you ask the
assistant a question it answers it for
you Pandora is very good at choosing
what music you might like based on the
sort of music you liked before Amazon is
pretty good at guessing what if you
brought this you might like to buy
that Google Alpha go beat go world
champion Lee sidol in March 2 2016
another AI system that is DP
stack beat experts at No Limit Texas
holding them poker but one of those
systems can do anything else they are
weak next comes a strong AI a strong
artificial intelligence consists of
systems that carry on the task
considered to be
humanik so when it moves the AI is
moving towards
human then it is called as
strong a strong AI is that which thinks
like human draws on General Knowledge
imitates Common Sense threatens to
become self-aware and take over the
world these tend to be more complex and
complicated
system they are programmed to handle
situations in which they may be required
to solve problem without having a person
to
intervene these kind of systems can be
found in applications like s
self-driving cars and Hospital operating
rooms so to conclude in this module we
continued the discussion from module one
regarding marketing evolution in
versions 4.0 and
5.0 we have discussed about the impact
of new age Technologies on
marketing we have understood how CarMax
used AI to enhance their business
operations and finally we have discussed
the categorization of AI into its
stronger and weaker versions and these
are the books from which the material
for this module was taken thank
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you
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a
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